Global player in agrifood biotechnology
Wenink mentioned it in his report, and the National Technology Strategy defines it as one of the ten key technologies that are important for the future earning capacity and strategic autonomy of the Netherlands: agrifood biotechnology. Or biotechnology aimed at making agriculture, crops, and ecosystems more productive, healthier, and more sustainable. One of the applications of this is crop breeding, which takes place on a large scale in North Holland. Many people do not know that in the north of North Holland one of the most important clusters in the world in the field of plant breeding and seed technology is located here: Seed Valley. Here, companies are working on new crops that are more resistant to drought, disease and extreme weather conditions. Crop breeding is important for the future of our food system and for the region. As ROM InWest, we are therefore working on further strengthening the ecosystem surrounding plant breeding and seed technology in North Holland. And we are looking into the possibility of developing a brainport-like strategy, focused on the seed-breeding companies and the related chain in order to create even more strength and entrepreneurship.
The protein transition continues
The protein transition, the shift from animal-based to more plant-based protein sources, is an important strategic theme within Agrifood because it reduces the pressure on agricultural land, water and the climate. We see this reflected in crop breeding, but also in other applications. For instance, Lgem develops systems for cultivating microalgae that can be deployed as a sustainable protein source. We invested in Lgem because the company can be a driver of innovative microalgae applications for more sustainable and healthy products in the food, feed, cosmetics and pharmaceutical industries. We support startups and scale-ups that focus on this protein transition due to the positive impact on our food system and the climate. We deliberately do this in the B2B sector, because those companies operate higher up and earlier in the chain, enabling them to make a greater impact.
Smart farming in a new perspective
Another key theme within Agrifood is smart farming. The agricultural and horticultural sectors are facing major challenges: labour is becoming scarcer, regulations regarding crop protection are becoming stricter, and the availability of fresh water is decreasing. Technology is therefore becoming increasingly important. Examples include soil sensors that measure precisely when irrigation is needed, weeding robots that replace manual labour, and drones that collect data to manage crops more accurately. Agurotech, one of our portfolio companies, focuses on smart farming. The company develops sensor technology that enables growers to manage water and soil quality more efficiently. What makes such innovations interesting is that they are scalable and can be applied globally. Within smart farming, we frequently see solutions being developed ‘on the farm’, specifically for that one farmer. As ROM InWest, we try to translate this: how do we take a solution to the world? That is truly a different perspective. This presents attractive opportunities for ambitious entrepreneurs. We support them in accelerating their readiness for finance and growing healthily.
A lot is happening in North Holland in the field of smart farming innovations. We want to make the best possible use of these developments by strengthening collaboration between the many innovation projects taking place within the Greenports of North Holland. This will allow knowledge developed in one project to flow more quickly into new applications. We see a role for ROM InWest as a connector within the ecosystem. That is why we are currently exploring with various partners whether we can develop a programmatic approach for smart farming in North Holland to support entrepreneurs even better.
The hidden goldmine of waste streams
One of Europe's largest concentrations of food processing industry is located in the Zaanstreek. This is also one of those hidden gems. Huge quantities of cocoa, coffee and other raw materials are processed here every day. This creates residual streams that often still contain a lot of value, which offers opportunities for entrepreneurs. For example, ChainCraft converts organic residual streams, including potato peelings, into fatty acids that are subsequently used in industrial applications. Greencovery was recently added to ROM InWest's portfolio in July and is also a great example of such a company. Using their technology, they extract things like fibres, proteins and antioxidants from cocoa shells, which are currently often incinerated. These technologies recover valuable substances from residual streams. At this intersection of the circular economy and food technology, we see great opportunities for innovative entrepreneurs.
Making strides towards impact
North Holland has the businesses, knowledge and practical environment to develop impactful innovations within Agrifood. The challenge is to make that regional strength more visible and to help entrepreneurs grow from idea to impact more quickly. The biggest hurdle for entrepreneurs within Agrifood often lies in scaling up their technology. They need large investments to realise prototypes or the so-called FOAK: the First-of-A-Kind, or the first commercial plant. That is a phase in which traditional investors are often still reluctant due to the high costs, long lead times and major risks.
We see an important role for ROM InWest in that regard. By getting in early, we can help companies make that initial commercial scale-up possible after all. In doing so, we have a role not only as an investor, but also as venture developers and a connector within the ecosystem. By helping entrepreneurs with funding, subsidies and partnerships, we make the step from idea to market smaller. And that is also the step towards impact, which is desperately needed for our food security, sustainability and strategic autonomy.
